Time to assess your global mobility programme

Time to assess your global mobility programme

GLOBAL MOBILITY PROGRAMME SCANNER As European companies strive to recover from a persistent recession, many seek to grow their business globally by using Mobility to support and drive global expansion. Recent Mercer surveys confirm that the number of international assignments has increased over the past two years and is likely to grow further in the future. Mobility is a key component of global growth strategy, and companies need to optimise their international mobility offering while maintaining appropriate levels of benefit coverage and ongoing governance that will provide a suitable, competitive reward package for assignees. Mercer and Marsh s Global Mobility Programme Scanner considers all aspects of a comprehensive mobility policy, allowing companies to review any component of the programme. The Scanner process provides specific guidance for improving governance and efficiency across an integrated programme and identifies ways in which the mobility process can be stream-lined.. For more information, see Worldwide Survey of International Assignment Policies and Practices, available at www.imercer.com/wiapp, and Alternative International Assignments Policies and Practices Survey (AIA), available at www.imercer.com/aia.

Consider these questions Do you need a seamless global mobility programme with efficient, cost-effective compensation and benefits management for a mobile workforce? Are you using the right peer companies to benchmark the level and effectiveness of your mobility programme? Do you regularly review the content and risk involved in your mobility programme both holistically and for each component? Can you offer your assignees an element of flexibility or choice in their reward package more specific to their circumstances? Are you fully aware of the hidden costs that may be embedded in your mobility policy or in the organisational and operational set-up of your mobility management process? Do you have a fragmented or adhoc approach to mobility, with different stakeholders taking mobility related decisions in isolation? Do you really know how your global mobility programme operates, or do you see only the tip of the iceberg?

BENEFITS OF THE MERCER and marsh GLOBAL MOBILITY PROGRAMME SCANNER The scanner integrates all the aspects of Mercer s mobility-related services with cross-functional expertise in compensation, retirement schemes, and health and personal protection plans. The scanner also integrates the general corporate risk aspects as they may relate to mobility from our sister company Marsh. Mercer and Marsh will provide you with a high-level assessment of your programme as well as identify and map the risks associated with it. We will indicate best market practices and make recommendations specific to the risk areas. Coordinated by a single project manager, the scanner will be used as a platform to review and identify: Areas of improvement to optimise your global expatriation costs and processes. Financial risks: compensation packages, risk insurances, and pension arrangements. Individual risks: satisfaction of your employees. Hidden costs and inefficiencies in your mobility programme. We developed an international compensation system to facilitate the mobility of our top executives. This global compensation grid is complemented by a retirement system that protects the rights of these employees, who won t necessarily return to their country of origin. We deal with a single project manager at Mercer who coordinates these various aspects internally. Thanks to its cross-functional expertise in local compensation, complementary retirement schemes, and health and personal protection plans, Mercer has enabled us to develop a relevant localisation policy. We have achieved our goals to optimise our international mobility costs while maintaining the social protection of our employees at an acceptable level with the help of innovative schemes.

Mercer and marsh s global response Cross-functional expertise to respond to a complete range of international mobility issues operational efficiency employer COMPENSATION STRUCTURE AND LEVEL retirement general risk coverage medical, life employee OPTIMISED... COST STRUCTURE RISK EXPOSURE AND CONTROL DELIVERY MODEL VALUABLE... COMPENSATION PACKAGE SOCIAL PROTECTION AND RISK COVERAGE EXPATRIATE EXPERIENCE

WHAT DOES the global mobility scanner cover? GLOBAL MOBILITY PROCESS Corporate views on mobility Mobility and HR policies Governance process International vehicles Categorisation of expatriates Compensation approach Communication and support Repatriation process and support CORE BENEFITS RISK AND MEDICAL Home versus host approach International medical plan International life plan International disability plan International business travel Security and evaluation plan CORE BENEFITS RETIREMENT Home versus host approach International/offshore pension plan approach Individual winners and losers analysis Social security policy Salary augmentation in lieu of retirement plan ASSIGNMENT PREPARATION AND CONDITIONS Language training Cultural training Annual vacation and holiday Home leave Settling-in allowance Temporary accommodation Preassignment trip Relocation services ALLOWANCES AND OTHER ASSIGNMENT PROVISIONS Transportation at host location Travel to and from host location Housing benefit at host location Host country housing purchase assistance Home country housing considerations Education support for dependent children Quality-of-living allowance Spouse or partner support Tax advisory services COMPENSATION Base salary Other cash components Variable compensation Cost-of-living allowance Per diem rates Job grade

GENERAL RISK MANAGEMENT FRAMEWORK Corporate risk management governance Mobility risk management policy Business travel management policy and travel tracking Home contents and personal property insurance Vacant home owners insurance Liability insurance Directors and officers coverage Global cargo and moving insurance Kidnap, extortion, and detention insurance Key persons and protection of financial investment GLOBAL MOBILITY PROGRAMME SCANNER RISK PROFILE SUMMARY GENERAL RISK MANAGEMENT FRAMEWORK COMPENSATION ALLOWANCES AND ASSIGNMENT PROVISIONS ASSIGNMENT PREPARATION AND CONDITIONS CORE BENEFITS RETIREMENT CORE BENEFITS RISK/MEDICAL PLANS GLOBAL MOBILITY PROCESS SAMPLE SECTION : GLOBAL MOBILITY PROCESS. GLOBAL MOBILITY PROCESS RISK PROFILE KEY OBSERVATIONS: While MICI Health Corporation s risk profile in this section of the scanner can be considered as low, there are a number of areas of concern regarding the alignment of the programme as it stands today and the future talent needs of the company. Compared with other firms of this size and sector, the profile of MICI Health Corporation expatriates is mainly parent company nationals. Currently, few of the senior management team have any international experience, so mobility is not seen as vital for growth in the company. SECTION 7: The company would benefit from a global view of talent and mobility. Such a move will lead to a review of the policies and processes, ultimately putting in place vehicles to support diversity in global mobility. GENERAL RISK MANAGEMENT FRAMEWORK MOBILITY ELEMENT RISK MERCER APPROACH 7. GENERAL RISK MANAGEMENT FRAMEWORK RISK PROFILE Review existing corporate policy to determine whether it remains in line with best market practice. Consider how it applies to the current KEY OBSERVATIONS: The general risk management framework at MICI Health Corporation is having desired results expatriate population/profile. Discuss ROI of mobility, how with medium to low risk across all of the six mobility elements analysed. Improvements can be achieved by tracking and monitoring governance by all subsidiaries. To this purpose, there are excellent tracking tools that will help MICI Corporate Views on management sees the value that assignments bring, and what impact. Health Corporation manage risks in this area by ensuring the travel policy is implemented, immigration regulations are Mobility the programme has on talent attraction, retention, and business followed, and medical and retirement elements are in compliance with the policy. performance. Stakeholder interviews and expatriate satisfaction surveys can be effective resources to assess alignment with MICI Health Corporation should consider revamping its communications portal with employees to include a section on management views. insurances that can inform employees and is also linked to a preferred supplier for various employee insurances while on GLOBAL MOBILITY PROGRAMME SCANNER assignment. Mobility Policy (HR Ensure that all stakeholders understand both the rationale for RISK PROFILE SUMMARY. Policy) creating assignments and their terms and conditions. MOBILITY ELEMENT RISK MARSH APPROACH Review current governance policy to ensure annual review of processes and appropriate benefits/compensation practices. Helps KEY OBSERVATIONS:. Governance Process Review the current corporate risk management governance to ensure mitigate risk and ensure treatment remains in line with market best MICI Health Corporation has a medium- to Corporate Risk that all significant mobility risk elements, both internal and external, practice. low-risk profile, which is to be expected 7. Management are well-covered and managed. This also ensures that the company Governance has a clear recognition of its risk profile and meets its duty of care LOW from RISK a leading firm in the life sciences International Vehicles Review both the benefits provided and the provider of programmes sector. The mobility programme allows towards international staff. MEDIUM. (Risk, Medical, to ensure cost efficiency and best premium and/or service across the MICI RISK Health Corporation to effectively Pension) market and programmes. Complete the current risk policy with regards to mobility risks by 5 HIGH staff RISK its operations with qualified and GLOBAL experienced employees today, but there MOBILITY optimising the: PROCESS are signs that the programme needs Review current segmentation of assignment profiles and policies and to be aligned to future needs in view of Categorisation of amend in line with corporate objectives. Mercer has seen market Identification of risk areas using industry-specific global risk maps..5 Mobility Risk important demographic changes at MICI Expatriates practice shifts in categories, particularly in relation to length of an 7. Risk evaluation using an integrated approach. Management Policy Health Corporation. assignment and value to the company and employee. Solutions implemented for all types of risks. There are some concerns as to whether MICI In addition, verify and ensure that the policy is updated and Health MERCER Corporation MARSH is able to retain top talent upon communicated internally. termination of the assignment and repatriation. This would suggest that a review is needed of the Business Travel Review the travel management programme to ensure it remains best role of talent management and core retirement 7. Management Policy practice. Review insurance coverages to ensure continued alignment. benefits. CORE CORE and Travel Tracking BENEFITS BENEFITS RISK/MEDICAL RETIREMENT MERCER MARSH 5 MICI Health Corporation s management could Home Content and Provide coverage to expatriates in certain riskier countries and for adapt a better structure of the programme to 7. Personal Property certain expat categories. meet future needs. It would also be in a better Insurance position to evaluate the value that mobility brings Vacant Home Owners Recommend reviewing opportunity and cost for such coverage for all to the group. 7.5 Insurance or certain categories. SAMPLE SAMPLE ASSIGNMENT PREPARATION/ CONDITIONS ALLOWANCES /ASSIGNMENT PROVISIONS COMPENSATION 7.6 Liability Insurance SAMPLE Review existing policy and consider specialist input for expertise to ensure best wording and price. MERCER MARSH GENERAL RISK MANAGEMENT FRAMEWORK LOW RISK MEDIUM RISK 5 HIGH RISK MERCER MARSH

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